What to do when a Tornado Strikes
Protect your family after a natural disaster with these tips.
Many consumers may not be aware of - or even consider - what they should do in the wake of a natural disaster when it comes to protecting their finances and information from the threat of identity theft. For example, in disasters such as tornadoes and hurricanes, high winds may carry personal documents miles away and leave them lying on the side of the road for anyone to find, and for this reason, it may be helpful to call all lenders and banks and alert them to the potential problem immediately after the storm. This way, the financial institutions may at least be able to better protect consumers from the threat of fraud. IDT911 CEO Matt Cullina also says consumers should also be alert to criminals using that paper work to pose as bank representatives.
For the same reasons, he says it's probably a good idea for affected consumers to check their credit reports to make sure that no fraudulent accounts have been opened using their exposed information.
Another problem that often arises in the wake of such disasters is that many crooks may come calling. Some may pose as representatives of government agencies or insurance companies and ask for detailed personal information about affected consumers or their finances, but disaster victims should be wary of this type of solicitation because no legitimate organization would ever conduct business in this manner.
And while some criminals may call a person in an attempt to garner this information, more enterprising thieves might instead opt to show up at victims' doors to increase the appearance of legitimacy. However, consumers should try to avoid answering any questions that may lead them to reveal personal information such as their date of birth or Social Security number, and alert local law enforcement officials about the incident.
One other scheme that regularly pops up after disasters is crooks who offer to repair damaged homes at rates that seem too good to be true. But the scam with these criminals is that they demand a large amount of money - often a few thousand dollars - up front. However, after making the payment, bilked homeowners will often find that their money and the bogus contractor are nowhere to be found.
Consumers can also work to take steps before a disaster:
Backup!
The most important step people can take to protect their finances against a tornado is to back up all financial records. It may be wise to make copies of your most important documents, like your birth certificate and Social Security card, and put them someplace safe, like a bank safe-deposit box.
"Even a post-office box, if you have no place else to turn," says Candace Iskowitz, spokeswoman for the Institute for Business & Home Safety, an insurance industry group. "Those are pretty safe, and the mail keeps functioning even in most disasters."
Everything else - bank statements, tax returns, your mortgage, and insurance policies for your car and home - should be backed up electronically. The easiest way to do this is to register for online accounts through your bank and credit-card companies.
Paper documents may need to be scanned. Other financial documents should be backed up, either onto an external hard drive, CD or flash drive (ideally all three). Be sure to include the device on your list of essential things to take with in the event of an evacuation. If you have many documents to save, or if you're worried you might forget them as you leave, find a place to store the copies somewhere else in the country that isn't susceptible to hurricanes. Finding a secure online data backup site is also a good idea.
"People need to keep in mind that duplication is the key," Iskowitz says.
Prove what you own
It's also important to document your possessions. The simplest way is to walk around your house taking photos or videos of everything you own, especially the high-value items. If you can, place the purchase receipts next to the expensive items and record them, too. The photos or video will come in handy if you have to file an insurance claim. Make sure to store these images with a family member or friend who lives in another part of the country. The IRS offers a helpful workbook that shows people how to itemize their property.
Plans change
Every evacuation is different because every natural disaster is different. Plus, living situations change. That's why it's important to update your emergency plan every year. If you have new additions to the family - a baby, say, or an older relative, you'll need to bring their important documents too, including ones concerning their health. You'll probably need more money, too. A tornado is a serious enough problem without running around the house trying to think of things to jam into the car.
"People get out, but they might not prepare themselves," Allen says. "And that's when they get into trouble."
Call the IRS
It may seem strange to tell the tax man that you're facing economic disaster. But the agency has watched taxpayers endure tornadoes and other natural disasters long enough that it now has an entire division dedicated to disaster relief. To help you prepare ahead of time, the IRS provides answers to frequently asked questions about disasters.
If you're caught away from your home without your financial documents, you can request a copy of your W-2s and other tax documents [pdf]. The IRS also provides information on how to respond to your specific disaster - anything from hurricanes in Florida to ice jams in Alaska. The news releases tell victims whether they are covered by federal disaster aid, advise them how to take advantage of tax relief or postponed filing deadlines, apply for relief, and deduct storm losses from their taxes. You can also talk to an IRS disaster specialist by calling: 866-562-5227.
Before a tornado strikes, you can save yourself months of aggravation and potentially huge financial losses by taking these simple steps now.
"It's pretty straightforward," Allen says. "Planning ahead and making copies of your documents can make a big difference."